diff --git a/module/zfs/dsl_dir.c b/module/zfs/dsl_dir.c
index aca32ff9bb..2565af1329 100644
--- a/module/zfs/dsl_dir.c
+++ b/module/zfs/dsl_dir.c
@@ -1262,6 +1262,7 @@ dsl_dir_tempreserve_impl(dsl_dir_t *dd, uint64_t asize, boolean_t netfree,
 	uint64_t quota;
 	struct tempreserve *tr;
 	int retval;
+	uint64_t ext_quota;
 	uint64_t ref_rsrv;
 
 top_of_function:
@@ -1337,7 +1338,16 @@ top_of_function:
 	 * on-disk is over quota and there are no pending changes
 	 * or deferred frees (which may free up space for us).
 	 */
-	if (used_on_disk + est_inflight >= quota) {
+	ext_quota = quota >> 5;
+	if (quota == UINT64_MAX)
+		ext_quota = 0;
+
+	if (used_on_disk >= quota) {
+		/* Quota exceeded */
+		mutex_exit(&dd->dd_lock);
+		DMU_TX_STAT_BUMP(dmu_tx_quota);
+		return (retval);
+	} else if (used_on_disk + est_inflight >= quota + ext_quota) {
 		if (est_inflight > 0 || used_on_disk < quota) {
 			retval = SET_ERROR(ERESTART);
 		} else {